The financial statements for the year ended June 30, 2011, are given below for Morgan Construction Company. The firm’s sales are projected to grow at a rate of 27percent next year, and all financial statement accounts will vary directly with sales. Morgan Construction Company Balance Sheet for Year Ended June 30, 2011 Assets: Liabilities and Stockholders’ Equity: Cash $3,349,239 Accounts payable $9,041,679 Accounts receivables 5,830,754 Notes payable 4,857,496 Inventories 22,267,674 Total current assets $31,447,667 Total current liabilities $13,899,175 Net fixed assets 43,362,482 Long-term debt 29,731,406 Other assets 1,748,906 Common stock 19,987,500 Retained earnings 12,940,974 Total assets $76,559,055 Total liabilities & equity $76,559,055 Morgan Construction Company Income Statement Year Ended June 30, 2011 Revenues $193,212,500 Costs 145,265,625 EBITDA $47,946,875 Depreciation 23,318,750 EBIT $24,628,125 Interest 11,935,869 EBT $12,692,256 Taxes (35%) 4,442,290 Net income $8,249,966 Based on that projection, develop a pro forma balance sheet and an income statement for the 2012 fiscal year. (Round answers to the nearest whole dollar, e.g. 5,275.) Morgan Construction Company Pro Forma Balance Sheet for Year Ended June 30, 2012 Assets: Liabilities and Stockholders’ Equity: Cash $ Accounts payable $ Accounts receivables Notes payable Inventories Total current assets $ Total current liabilities $ Net fixed assets Long-term debt Other assets Common stock Retained earnings Total assets $ Total liabilities & equity $ Morgan Construction Company Pro Forma Income Statement Year Ended June 30, 2012 Revenues $ Costs EBITDA $ Depreciation EBIT $ Interest EBT $ Taxes (35%) Net income
The financial statements for the year ended June 30, 2011, are given below for Morgan Construction Company. The firm’s sales are projected to grow at a rate of 27percent next year, and all financial statement accounts will vary directly with sales. Morgan Construction Company Balance Sheet for Year Ended June 30, 2011 Assets: Liabilities and Stockholders’ Equity: Cash $3,349,239 Accounts payable $9,041,679 Accounts receivables 5,830,754 Notes payable 4,857,496 Inventories 22,267,674 Total current assets $31,447,667 Total current liabilities $13,899,175 Net fixed assets 43,362,482 Long-term debt 29,731,406 Other assets 1,748,906 Common stock 19,987,500 Retained earnings 12,940,974 Total assets $76,559,055 Total liabilities & equity $76,559,055 Morgan Construction Company Income Statement Year Ended June 30, 2011 Revenues $193,212,500 Costs 145,265,625 EBITDA $47,946,875 Depreciation 23,318,750 EBIT $24,628,125 Interest 11,935,869 EBT $12,692,256 Taxes (35%) 4,442,290 Net income $8,249,966 Based on that projection, develop a pro forma balance sheet and an income statement for the 2012 fiscal year. (Round answers to the nearest whole dollar, e.g. 5,275.) Morgan Construction Company Pro Forma Balance Sheet for Year Ended June 30, 2012 Assets: Liabilities and Stockholders’ Equity: Cash $ Accounts payable $ Accounts receivables Notes payable Inventories Total current assets $ Total current liabilities $ Net fixed assets Long-term debt Other assets Common stock Retained earnings Total assets $ Total liabilities & equity $ Morgan Construction Company Pro Forma Income Statement Year Ended June 30, 2012 Revenues $ Costs EBITDA $ Depreciation EBIT $ Interest EBT $ Taxes (35%) Net income
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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The financial statements for the year ended June 30, 2011, are given below for Morgan Construction Company. The firm’s sales are projected to grow at a rate of 27percent next year, and all financial statement accounts will vary directly with sales.
Morgan Construction Company |
|||
Assets: | Liabilities and |
||
Cash | $3,349,239 | Accounts payable | $9,041,679 |
5,830,754 | Notes payable |
4,857,496 |
|
Inventories |
22,267,674 |
||
Total current assets | $31,447,667 | Total current liabilities | $13,899,175 |
Net fixed assets | 43,362,482 | Long-term debt | 29,731,406 |
Other assets |
1,748,906 |
Common stock | 19,987,500 |
Retained earnings |
12,940,974 |
||
Total assets | $76,559,055 | Total liabilities & equity | $76,559,055 |
Morgan Construction Company Income Statement Year Ended June 30, 2011 |
|
Revenues | $193,212,500 |
Costs |
145,265,625 |
EBITDA | $47,946,875 |
23,318,750 |
|
EBIT | $24,628,125 |
Interest |
11,935,869 |
EBT | $12,692,256 |
Taxes (35%) |
4,442,290 |
Net income | $8,249,966 |
Based on that projection, develop a pro forma balance sheet and an income statement for the 2012 fiscal year. (Round answers to the nearest whole dollar, e.g. 5,275.)
Morgan Construction Company Pro Forma Balance Sheet for Year Ended June 30, 2012 |
|||
Assets: | Liabilities and Stockholders’ Equity: | ||
Cash | $
|
Accounts payable | $
|
Accounts receivables |
|
Notes payable |
|
Inventories |
|
||
Total current assets | $
|
Total current liabilities | $
|
Net fixed assets |
|
Long-term debt |
|
Other assets |
|
Common stock |
|
Retained earnings |
|
||
Total assets | $
|
Total liabilities & equity | $
|
Morgan Construction Company Pro Forma Income Statement Year Ended June 30, 2012 |
|
Revenues | $
|
Costs |
|
EBITDA | $
|
Depreciation |
|
EBIT | $
|
Interest |
|
EBT | $
|
Taxes (35%) |
|
Net income | $
|
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